Industry news

Cheque guarantee card scheme ends

Cheque guarantee cards will no longer be valid as a way to guarantee a cheque after this Thursday (30th June 2011).

As originally announced by the Payments Council in June 2009, the decision to end the cheque guarantee scheme is a result of the long-term decline in the use of guaranteed cheques - down 65% over the last five years, with only seven per cent of cheques being guaranteed in 2010.

Businesses will still be able to accept cheques and customers will still be able to write them, just not guaranteed by a card. As well as receiving cheques, there are a number of other ways for businesses to receive payment from their customers. To help businesses explain to customers why they can no longer accept a guaranteed cheque, a leaflet and poster are available. Copies are available to download or order from www.paymentscouncil.org.uk/current_projects/cheque_guarantee_card_scheme/fact_sheets.

The Payments Council, together with the payments industry, has set a target date for phasing out cheques, with the aim to close the central system for processing cheques in 2018. However, a decision to go ahead will only be taken in 2016, and this will be dependent on acceptable alternatives to cheques being in place and being used. In the run-up to 2018, the industry will be looking to develop alternatives for cheques wherever they are needed.

To learn more about plans for the future of cheques, or about any other payment methods, visit www.PayYourWay.org.uk.